Association Assistance Corporation
Associations are presently faced with a unique set of circumstances. Some owners will not or cannot pay the association fees and this is seriously affecting the budgets. These troubles automatically spill over to the paying association members so the whole community is faced with hard choices – cut budgets severely and/or force paying members to pay more. Neither of these options is attractive
As association officers discuss the options with the association managers they discover that the techniques for collecting the past due fees simply do not work in this market environment. And it is worse than that. After some time it becomes apparent that the nonpaying owners and mortgage companies have discovered that the associations can be taken advantage of because of the unique circumstances.
This situation is due to the fact that the present values of the units are overwhelmed by the mortgage balances and every lien holder in the sequence is almost “frozen” in place and very slow to move. With each passing month association fees are permanently lost and the cost of the market problems is borne by the associations. In most associations the problem is big enough to be very annoying, but the cost to pursue a solution for an individual association is prohibitive.
Association Assistance Corporation solves this complicated problem with an elegant solution that is based upon the opportunities that emerge when we approach the individual association’s problems with a macro solution. Simply put, AAC provides critical mass for the associations. By combining the few units from each association into one large separate corporation we are able to get the advantages of scale and we are able to offload the annoyances caused by the non performing units and over time solve the problems caused by these units.
We do not attack this problem on one front alone, but instead we take a combination of approaches that provide for what the association is actually after – a performing, paying association member. We use the laws that were meant to protect the associations and we use critical mass to place the levers that allow these laws to have the proper affect.